Apple is Reopening more than Half of it's Retails Stores in China though its Supply Chain could take a Month or more to Stabilize
A new report this afternoon claims that Apple is reopening more than half of its retail stores in China, trying to rebound from a sales hit tied to the coronavirus.
As of Monday, 29 of 42 Apple stores in the country are opening, according to a review of the company’s retail websites. Most of these locations are still operating on shortened hours. Some outlets will be open for fewer than 8 hours. That compares with a typical 12-hour day, depending on location.
Apple’s retail footprint in China is critical to the company’s sales. The store closures were one of two main reasons for Apple saying it wouldn’t meet its revenue target of at least $63 billion in the current quarter ending in March. Read Bloomberg's report titled "Apple Reopens More Than Half of Its Retail Stores in China," on their technology homepage.
Earlier today Apple analyst Daniel Ives of Wedbush told clients that Apple's supply chain would "probably take more than a month to get back to full capacity at the earliest amid disruptions caused by the coronavirus.
Even in a best-case scenario, Apple's supply chain won’t be fully functional until early April as workers at Apple’s manufacturing partners return to work in China. The disruptions could last until until the end of June in a worst case scenario.
"All the Street’s focus is on the supply chain and gauging when some form of normalization begins around iPhone production throughout China," Ives wrote in a research note. For more on this, read the full Bloomberg report.
On Friday Patently Apple posted a report titled "Foxconn gradually resumes iPhone Production in Zhengzhou, announces US$746 bonuses to attract workers to begin Immediately."